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91_HB1305enr
HB1305 Enrolled LRB9101090RCks
1 AN ACT to amend the Criminal Code of 1961 by changing
2 Sections 46-1, 46-1.1, 46-2, and 46-5.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Criminal Code of 1961 is amended by
6 changing Sections 46-1, 46-1.1, 46-2, and 46-5 as follows:
7 (720 ILCS 5/46-1)
8 Sec. 46-1. Insurance fraud.
9 (a) A person commits the offense of insurance fraud when
10 he or she knowingly obtains, attempts to obtain, or causes to
11 be obtained, by deception, control over the property of an
12 insurance company or self-insured entity by the making of a
13 false claim or by causing a false claim to be made on any
14 policy of insurance issued by an insurance company or by the
15 making of a false claim to a self-insured entity, intending
16 to deprive an insurance company or self-insured entity
17 permanently of the use and benefit of that property.
18 (b) Sentence.
19 (1) A violation of this Section in which the value
20 of the property obtained or attempted to be obtained is
21 $300 or less is a Class A misdemeanor.
22 (2) A violation of the Section in which the value
23 of the property obtained or attempted to be obtained is
24 more than $300 but not more than $10,000 is a Class 3
25 felony.
26 (3) A violation of this Section in which the value
27 of the property obtained or attempted to be obtained is
28 more than $10,000 but not more than $100,000 is a Class 2
29 felony.
30 (4) A violation of this Section in which the value
31 of the property obtained or attempted to be obtained is
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1 more than $100,000 is a Class 1 felony.
2 (c) For the purposes of this Article, where the exact
3 value of property obtained or attempted to be obtained is
4 either not alleged by the accused or not specifically set by
5 the terms of a policy of insurance, the value of the property
6 shall be the fair market replacement value of the property
7 claimed to be lost, the reasonable costs of reimbursing a
8 vendor or other claimant for services to be rendered, or
9 both.
10 (d) Definitions. For the purposes of this Article:
11 (1) "Insurance company" means "company" as defined
12 under Section 2 of the Illinois Insurance Code.
13 (2) "Self-insured entity" means any person,
14 business, partnership, corporation, or organization that
15 sets aside funds to meet his, her, or its losses or to
16 absorb fluctuations in the amount of loss, the losses
17 being charged against the funds set aside or accumulated.
18 (3) "Obtain", "obtains control", "deception",
19 "property" and "permanent deprivation" have the meanings
20 ascribed to those terms in Article 15 of this Code.
21 (4) "Governmental entity" means each officer,
22 board, commission, and agency created by the
23 constitution, whether in the executive, legislative, or
24 judicial branch of State government; each officer,
25 department, board, commission, agency, institution,
26 authority, university, and body politic and corporate of
27 the State; each administrative unit or corporate
28 outgrowth of State government that is created by or
29 pursuant to statute, including units of local government
30 and their officers, school districts, and boards of
31 election commissioners; and each administrative unit or
32 corporate outgrowth of the above and as may be created by
33 executive order of the Governor.
34 (5) "False claim" means any statement made to any
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1 insurer, purported insurer, servicing corporation, insurance
2 broker, or insurance agent, or any agent or employee of the
3 entities, and made as part of, or in support of, a claim for
4 payment or other benefit under a policy of insurance, or as
5 part of, or in support of, an application for the issuance
6 of, or the rating of, any insurance policy, when the
7 statement contains any false, incomplete, or misleading
8 information concerning any fact or thing material to the
9 claim, or conceals the occurrence of an event that is
10 material to any person's initial or continued right or
11 entitlement to any insurance benefit or payment, or the
12 amount of any benefit or payment to which the person is
13 entitled.
14 (6) "Statement" means any assertion, oral, written, or
15 otherwise, and includes, but is not limited to, any notice,
16 letter, or memorandum; proof of loss; bill of lading; receipt
17 for payment; invoice, account, or other financial statement;
18 estimate of property damage; bill for services; diagnosis or
19 prognosis; prescription; hospital, medical or dental chart or
20 other record, x-ray, photograph, videotape, or movie film;
21 test result; other evidence of loss, injury, or expense;
22 computer-generated document; and data in any form.
23 (Source: P.A. 90-333, eff. 1-1-98.)
24 (720 ILCS 5/46-1.1)
25 Sec. 46-1.1. Fraud on a governmental entity.
26 (a) A person commits the offense of fraud on a
27 governmental entity when he or she knowingly obtains,
28 attempts to obtain, or causes to be obtained, by deception,
29 control over the property of any governmental entity by the
30 making of a false claim of bodily injury or of damage to or
31 loss or theft of property or by causing a false claim of
32 bodily injury or of damage to or loss or theft of property to
33 be made against the governmental entity, intending to deprive
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1 the governmental entity permanently of the use and benefit of
2 that property.
3 (b) Sentence.
4 (1) A violation of this Section in which the value
5 of the property obtained or attempted to be obtained is
6 $300 or less is a Class A misdemeanor.
7 (2) A violation of this Section in which the value
8 of the property obtained or attempted to be obtained is
9 more than $300 but not more than $10,000 is a Class 3
10 felony.
11 (3) A violation of this Section in which the value
12 of the property obtained or attempted to be obtained is
13 more than $10,000 but not more than $100,000 is a Class 2
14 felony.
15 (4) A violation of this Section in which the value
16 of the property obtained or attempted to be obtained is
17 more than $100,000 is a Class 1 felony.
18 (Source: P.A. 90-333, eff. 1-1-98.)
19 (720 ILCS 5/46-2)
20 Sec. 46-2. Aggravated fraud.
21 (a) A person commits the offense of aggravated fraud
22 when he or she, within an 18 month period, obtains, attempts
23 to obtain, or causes to be obtained, by deception, control
24 over the property of an insurance company or insurance
25 companies, a self-insured entity or self-insured entities, or
26 any governmental entity or governmental entities by the
27 making of 3 or more false claims or by causing 3 or more
28 false claims to be made arising out of separate incidents or
29 transactions in violation of Section 46-1 or 46-1.1 of this
30 Code.
31 (b) Sentence. A violation of this Section is a Class 1
32 felony, regardless of the value of the property obtained,
33 attempted to be obtained, or caused to be obtained.
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1 (Source: P.A. 90-333, eff. 1-1-98.)
2 (720 ILCS 5/46-5)
3 Sec. 46-5. Civil damages for insurance fraud or fraud on
4 a governmental entity.
5 (a) A person who knowingly obtains, attempts to obtain,
6 or causes to be obtained, by deception, control over the
7 property of any insurance company by the making of a false
8 claim or by causing a false claim to be made on a policy of
9 insurance issued by an insurance company, or by the making of
10 a false claim or by causing a false claim to be made to a
11 self-insured entity intending to deprive an insurance company
12 or self-insured entity permanently of the use and benefit of
13 that property, shall be civilly liable to the insurance
14 company or self-insured entity that paid the claim or against
15 whom the claim was made or to the subrogee of that insurance
16 company or self-insured entity in an amount equal to either 3
17 times the value of the property wrongfully obtained or, if no
18 property was wrongfully obtained, twice the value of the
19 property attempted to be obtained, whichever amount is
20 greater, plus reasonable attorneys fees. A person who
21 knowingly obtains, attempts to obtain, or causes to be
22 obtained, by deception, control over the property of a
23 governmental entity by the making of a false claim of bodily
24 injury or of damage to or loss or theft of property,
25 intending to deprive the governmental entity permanently of
26 the use and benefit of that property, shall be civilly liable
27 to the governmental entity that paid the claim or against
28 whom the claim was made or to the subrogee of the
29 governmental entity in an amount equal to either 3 times the
30 value of the property wrongfully obtained or, if property was
31 not wrongfully obtained, twice the value of the property
32 attempted to be obtained, whichever amount is greater, plus
33 reasonable attorneys fees.
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1 (b) An insurance company or self-insured entity that
2 brings an action against a person under subsection (a) of
3 this Section in bad faith shall be liable to that person for
4 twice the value of the property claimed, plus reasonable
5 attorneys fees. In determining whether an insurance company
6 or self-insured entity acted in bad faith, the court shall
7 relax the rules of evidence to allow for the introduction of
8 any facts or other information on which the insurance company
9 or self-insured entity may have relied in bringing an action
10 under subsection (a) of this Section.
11 (c) For the purposes of this Section, where the exact
12 value of the property attempted to be obtained is either not
13 alleged by the claimant or not specifically set by the terms
14 of a policy of insurance, the value of the property shall be
15 the fair market replacement value of the property claimed to
16 be lost, the reasonable costs of reimbursing a vendor or
17 other claimant for services to be rendered, or both.
18 (Source: P.A. 90-333, eff. 1-1-98.)
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